Buying A Car After Bankruptcy? These Suggestions Could Help
If you are buying a car after bankruptcy, here are a few
suggestions that could help:
First, you want to make sure you've done everything you can to
increase your credit score. Once you've done that you're ready
to start shopping for your car!
Here's a question for you: Is it better to get outside financing
or get financing through the dealership when you are buying a
car after bankruptcy. The answer is... drum roll please... it
depends!
It's worthwhile to apply for outside financing when buying a car
after bankruptcy. But make sure you do it through the right
lender. If you don't, you could end up paying $100s or $1,000s
more in extra interest. If you even get approved at all.
Now let's assume you've done your homework. You found the car
you like, you know how much that make and model sells for, and
you know how much your trade in is worth. It's time to visit the
dealership...
Let's say you find the specific car you want to buy. Now you're
going to need to negotiate the price.
If you lined up outside financing, then you're in a good
position from a negotiating standpoint. But what if you could
not get outside financing for a car after bankruptcy? What if
you need to depend on the dealership to get you financed when
buying the car after bankruptcy?
Many people think that since they had a bankruptcy they are at
the mercy of the car dealership in this situation. THIS SIMPLY
IS NOT TRUE!
Let me share a little secret with you: If the dealership has run
your credit report and they start negotiating with you, then
they're pretty sure they can finance you. After all, do you
really think they would waste their time negotiating a price
with someone they did not think they could finance? Of course
not!
Here's where things get interesting. How many times a year does
the dealership negotiate with buyers? Probably hundreds of times
a year at a decent sized dealership. Now what about you - how
many times do you negotiate for a car? If you are like most
people, it's probably once every so many years.
Most people will thoroughly research the price of the car they
want to buy. If it's new they'll take time to find out the
dealership's cost and, if they have one, the value of their
trade in.
...and they'll go back and forth with the dealership for two or
three hours until everyone agrees on the numbers and a sale
takes place.
Chances are the buyer still may have left a pile of money on the
table - and didn't even know it. The reason the buyer probably
left money on the table is that they more than likely made two
critical mistakes without even being aware of it. One mistake
was that they didn't negotiate all five parts of the sale
separately. The price of the car is just one part.
On that note, another step you will want to take is to improve
your car buying skills. How? Visit websites that provide car
buying tips. Another way is to pick up a good book on how to buy
a car - you can find quite a few of them out there.
Unfortunately, I have not run across any that provide specific
information on buying a car after bankruptcy. However, After
Bankruptcy Credit Solutions does cover this topic in detail - so
the information is out there.
Other than a home, buying a car is one of the bigger purchases
you're going to make. You need to AVOID any mistakes that can
cost you up to $100s or $1,000s of dollars in extra interest. In
other words, you simply can't afford not to get things right
when you're buying a car after bankruptcy.
This article covered some steps you can take which could help
when buying a car after bankruptcy. Put them to use and they
could save you from making some expensive mistakes!
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